The CIF continues to test and refine financing models that can break down the barriers to private sector participation in climate action. The CIF is achieving results in the private sector by: covering high up-front costs and risks, championing first-movers, stimulating markets, and bridging financing and information gaps

Across the CIF, $2.3 billion (or close to 30 percent of $8.3 billion total CIF funding) is designated for projects and programs that aim to stimulate private sector participation. The CIF employs three financing vehicles for engaging the private sector in program operations

  • $1.7 billion allocated for private sector projects specified in CIF investment plans
  • Approximately $640 million allocated to specific private sector facilities to achieve scale and speed in response to market demand, including $465 million allocated through the CTF Dedicated Private Sector Programs (DPSP)

Accessing the CIF: 

CIF financing cannot be accessed directly. Instead, all CIF financing is implemented through five partner multilateral development banks (MDB): African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and World Bank Group (including the International Finance Corporation). Through partner MBDs, the CIF offers a range of financial instruments:

  • Senior loans
  • Convertible grants/contingent recovery grants
  • Equity
  • Local currency swaps and guarantees
  • Guarantees
  • Contingent recovery loans
  • Subordinated debt

CIF funding to private sector operations can be channeled through local financial institutions or invested directly into real sector companies. CIF financial support is often accompanied by a technical assistance component targeting the enabling environment and capacity building for local institutions and companies.